The head of a board overseeing Venezuela’s international oil assets told Reuters that Venezuelan negotiators have met with bondholders and creditors owing billions from defaults and expropriation claims.
As a federal court judge decides next month whether to start an auction of shares that might split up Venezuela’s biggest offshore asset, Citgo Petroleum (PDVSAC.UL), discussions have accelerated. Citgo’s license will expire next month if not renewed.
Crystallex International, ConocoPhillips (COP.N), Siemens Energy (ENR1n.DE), and Red Tree Investments might apply $2.6 billion in court-approved claims to auction proceeds.
In a New York court lawsuit, PDVSA bondholders seeking hundreds of millions of dollars.
Since party representatives initially met late last year and in February, respectively, we have progressed with bondholders and Crystallex. “Offers and counteroffers have been presented,” PDVSA’s international subsidiaries’ ad-hoc board head Horacio Medina told Reuters.
He added that Venezuelan negotiators had met with ConocoPhillips but have not exchanged financial proposals.
“Parties are cooperative. Medina stated that Conoco negotiations should begin soon.
The other Delaware creditors, Siemens Energy and Red Tree Investments, have not started talks.
Conoco, seeking $1.3 billion from an arbitration judgment related to the takeover of its Venezuelan oil operations, declined to comment. In May, CEO Ryan Lance saw “light at the end of the tunnel” regarding claims from the 2007 Venezuelan asset takeover.
Crystallex rejected the comment. Citgo did not respond to inquiries.
The bondholders’ attorney didn’t respond to demands for comment. On Wednesday, bondholders asked a New York federal court to protect their assets if the Citgo Holding share sale proceeded without their claims.
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